UK considers deal to reduce EU trade barriers

The UK government has opened the door to a potential deal with the EU that could see it rejoin a tariff-free trade bloc for food and farming products, raising hopes for reduced barriers and smoother trade.

Business secretary Jonathan Reynolds, speaking at the World Economic Forum in Davos, acknowledged the possibility of aligning UK rules with EU standards in exchange for frictionless access to European markets.

However, Mr Reynolds stressed that such an arrangement would not breach the UK government’s “red lines”, which exclude rejoining the EU’s customs union or single market.

See also: Labour government challenged to deliver for farming in 2025

“We can improve the terms of trade with the EU in a way which doesn’t revisit customs unions or the single market, or the arrangements of Brexit,” Mr Reynolds told the BBC.

“We can do that whilst pursuing closer trade links around the world.”

Mr Reynolds described this as Labour’s “twin-track strategy”, offering the “best of everything” on trade.

His remarks come after EU trade commissioner Maros Sefcovic suggested that an agreement could involve “dynamic alignment” with EU rules, including a potential veterinary agreement for food and farm exports.

This would allow the UK to mirror EU standards as they evolve, thus reducing trade barriers for agricultural products.

The Labour Party, which made such a deal a key part of its 2024 manifesto, has strongly backed the idea.

Since Brexit, regulatory burdens and red tape have slowed food and farming exports across the border.

“We need to reduce barriers to trade with our nearest neighbours and ensure smooth supply chains,” said Labour MP Emily Thornberry.

Tory backlash

However, the proposal has faced sharp criticism from Conservative figures.

Shadow foreign secretary Priti Patel described the talks as a “dangerous step” that could “shackle” the UK to the EU.

She tweeted: “Labour’s programme of bending the knee to the EU is disgraceful.

“They are unpicking Brexit with their plans to shackle us to the EU. [Prime minister Keir] Starmer and his friends are all too happy to sacrifice our national interest for their socialist view of the world, no matter the cost.”

Ms Patel vowed to “fight for the democratic freedoms the British public voted for and will challenge Labour’s great betrayal of our country”.

Business groups have expressed support, however, for joining the Pan-Euro-Mediterranean Convention (PEM), which allows tariff-free trade across Europe, parts of North Africa and the Levant.  

William Bain, head of trade policy at the British Chambers of Commerce, argued that joining PEM would reduce costs and paperwork for UK firms, particularly those with complex international supply chains.